Escrow & Title
An Oklahoma abstract company that accidentally omits a recorded lien from an abstract it prepares may be liable to the client for:
ANo liability as abstractors only compile records without guaranteeing accuracy
BDamages resulting from the omission if the client relied on the abstract and suffered loss✓ Correct
COREC disciplinary action only
DOnly the cost of a new abstract
Explanation
Licensed abstractors in Oklahoma owe a duty of care in compiling abstracts. If an abstractor negligently omits a recorded instrument (such as a lien) and the client suffers financial loss as a result, the abstractor may be liable for the resulting damages under the Oklahoma Abstractors Act.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
Math Concepts
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